The National Coffee Fund

The national coffee fund ("Fondo Nacional del Cafe") (FNC) has served for several decades as the primary instrument of Colombian coffee policy formulation and implementation. The FNC has two main investment sub-funds, the stabilizer fund and the investment fund. The stabilizer fund manages resources for the internal and external administration of product, prices and commerce. The investment fund manages the resources for the investment in the Federation's enterprises and, for the lines of credit and production financing for coffee growers.[24] During the 20th century, Colombia became the number one producer and exporter of premium mild washed coffee in the world. This has been a very significant achievement, attained by the combined efforts of the private sector, the gremial organizations and the Federation's institutions. The successful model of Colombian coffee production and commerce is the outcome of a well balanced combination of efficient private enterprise and a well planned macroeconomic policy by the government. This economic model has become the organizational archetype for more than fifty coffee producing countries in Africa, Asia and Latin America.[19] The 21st century has brought new challenges to the coffee industry, such as the volatility of international prices, the erosion of international agreements and the increased production by Brazil and Vietnam. In order to keep the edge, Colombia must increase its efficiency and produ tivity, by investing in new technologies, infrastructure, training and replanting. Here is where the Federation and the FNC play a decisive roll.[19] The program for restructuring and modernizing the coffee industry in Colombia has estimated an investment of two billion dollars. These monetary funds need to be generated from domestic and international sources. The Colombian coffee institutions and the policy making entities are facing the new realities of globalization and monetary volatility and economic uncertainties. Technological advances are being made in electronic commerce, production engineering and quality control, in an effort to reduce production costs and increase productivity. The historical evidence demonstrates that the institutions, organizations and policy making instruments of the coffee industry in Colombia are very dynamic and shall continue to adapt to changing circumstances and perform with leadership, innovation and positive results. Asociacion Nacional del Cafe (ANACAFE) (established November 4, 1960 in Guatemala City) [1] is the Guatemalan National Coffee Association, representing all coffee producers in the country. It was initiated by the precursors to the International Coffee Organization, as a way of centralizing statistics of the nation's coffee production as it continued the work of La Oficina Central del Cafe, previously established and operated by the central government which in turn was established in 1928.